While the median longevity of the populace of Taiwan is approaching 80 years old, this does not mean that such longevity is associated with a healthy life, as a majority of people suffer an average of nearly ten years of bedridden convalescence, dementia or other troublesome diseases which affect not only the quality of life, but also create burdens on family caregivers. As the changing socioeconomic environment has meant a decline in birth rates, resulting in changing family types, and a rapidly ageing society emerging in the population structure, the importance of eldercare, convalescence and healthcare have become apparent.
Insurance trusts are a financial services product combining the features and functions of “insurance” and “trusts”, so this study’s purpose explores how to deploy the trust system as interconnected with the long term care insurance and caregiving service resources, thereby realizing the capabilities of trusts and insurance.
The study findings indicate that the insurance policy compensation mode for death or total disability, are mostly cash payments, while “long term care”, besides cash payments, requires interconnection with the relevant care resources. A trust can help resolve the current insurance policy compensation system limitation to cash payment modalities, but at present can ensure in the present stage of development the provision of care requirements with appropriate resource guidance and a means of delivering all the services needed.
The study recommendations are as follows: 1. Amend the Insurance Act, to expand the scope of insurance trusts, while concomitantly appropriately adjusting the qualifications conditions for insurers engaging in insurance trust operations, or provide relevant subsidies and stimulus measures to encourage the insurance industry to enhance the operating space in these services. 2. Expand trust operators ability to deploy services beyond the existing scope of the Trust Act, from the traditional cash financial trust management so as to interconnect with care service resources.3. Deploy incentive measures to encourage establishment of professional (operators) trust firms, focused exclusively on a trust operations business type, which are able to provide trust beneficiaries with financial and life care planning.